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Kanadevia Corporation continues sharp rise on forecast of 2.1x operating profit and 13 yen dividend increase for fiscal year ending March 2027

Wed May 13, 2026 10:20 am JST Catalyst

Kanadevia <7004> shares surged after the company forecast a sharp profit rebound and a dividend hike for the fiscal year ending March 2027. Following the market close on May 12, the firm projected revenue of 640 billion yen (down 0.8% year-on-year) but expects operating profit to jump 2.1 times to 25.5 billion yen and net profit to rise 88.6% to 21 billion yen. The annual dividend forecast was raised by 13 yen to 38 yen, a move well received by the market.

While overseas environmental EPC projects remain solid, revenue in the machinery, infrastructure, and decarbonization units is expected to decline due to portfolio reforms. The projected profit surge is attributed to the absence of prior-year one-time costs from overseas technical issues and narrowing losses in the bridge business.

For the fiscal year ended March 2026, the company reported revenue of 645,222 million yen (up 5.7% year-on-year), while operating profit slumped 54.8% to 12,192 million yen and net profit fell 49.6% to 11,137 million yen.

Sentiment was further bolstered by a regulatory filing showing Hong Kong-based Oasis Management has built a 5.44% stake in the company. The activist fund stated it may make proposals to protect shareholder value, sparking speculative interest.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

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